New York regulators were looking at potential new rules that would ban third-party sports betting advertisers and affiliates from operating.
But after further discussions, the ban did not follow through. The New York State Gaming Commission (NYSGC) decided to allow cost-per-acquisition (CPA) deals.
For the time being, affiliate marketing sites can continue to advertise promotions and help attract new customers to NY sportsbook operators.
New York regulators approve CPA deals with reservations
The NYSGC approved a series of amendments permitting limited affiliate marketing, allowing third parties to run business with sportsbooks.
The revised regulations still impose some rules and restrictions higher than other US sports betting markets. That said, affiliate sites must disclose their business partnerships with NY operators.
Every affiliate marketer must specify whether it has agreed to promote, refer customers, or conduct advertising on behalf of a sports betting licensee.
More advertising limitations might arise in the future
While New York regulators are willing to offer a fair deal to affiliates, there is still a possibility that more limitations on affiliates might come up in the future. According to SBC Americas, the NYSGC Chairman Brian O’Dwyer even cautioned this was possible:
“If I find that within the next six months to a year that there have been significant problems with the type of advertising that’s coming down I will come back to the staff and to my fellow Commissioners and ask that we revisit that rule and prohibit third-party advertising,” said O’Dwyer.
Earlier this year, the NYSGC tightened restrictions on sports betting ads. The commission approved proposed rules that would prohibit compensation of third parties based on:
- Volume of customers
- Number of wagers placed
- Or the outcome of the bets
The group approved an addition to existing marketing rules on misleading terms like:
- “Risk-free” when describing a promotion
- Revenue share affiliate agreements
- Advertising which could appeal to players under 21
The rules partially addressed some of the concerns raised by a proposed bill S1550 which suggested problem gambling warnings and a hotline for future advertisements.
New York follows Massachusetts’ example
New York followed the Massachusetts example and joined the list of regulators, taking a closer look at the affiliate marketing network in the US.
In Massachusetts, the state gaming commission forbade affiliate marketers from signing revenue-sharing deals with sportsbooks but allowed limited advertising.
That influenced the affiliate marketers’ representatives to meet with the NYSGC and discuss the options until they reached an agreement.